Fonterra Knows whos Got Milk Across Its Global Supply Chain

Wheres my order? Its a simple question

Wheres my order? Its a simple question. But at Fonterra, the worlds largest dairy ingredient exporter, there was no easy answer. Thats because Fonterra moves in excess of 2.6 million tons of dairy ingredients to more than 140 countries through a complex distribution and warehouse network.

Fonterra is highly dependent on a variety of third-party logistics providers (3PLs) to deliver products in full and on time. Determining an orders status at any given time used to take a manual search through up to 11 different systemsa tedious process. Compounding that, most of the time Fonterra didnt even know about a problem until after the fact.

"Annual benefits are in the millions of dollars. Agents can provide faster, accurate service, and Fonterra can proactively solve problems and manage vendors better."

Seeing any order at any time

Today, Fonterra can seeon a single screenthe status of any order at any time, from when its placed to when a customer receives it. At the core of the global visibility solution is the Software AG webMethods product suite. According to Nigel Jones, General Manager, Supply Chain Strategy and Procurement, the solution helps us meet our goal of becoming a world-class supply chain operation. We deployed the solution quickly and at a relatively low costand were making major strides in how we manage our global supply chain.

With this Business Activity Monitoring (BAM) solution, Fonterra can measure a Key Performance IndicatorDelivered on Time and in Full. Annual benefits are in the millions of dollars. Agents can provide faster, accurate service, and Fonterra can proactively solve problems and manage vendors better.

The suite at work

The solution builds on Fonterras previous investment in the webMethods Enterprise Service Bus (ESB). Fonterra also selected the suite because of its incremental low cost and speed of deployment. The suite also had process and workflow capabilities beyond conventional 3PL visibility platforms.

webMethods Trading Networks, the B2B gateway, works in conjunction with the ESB to capture and immediately populate data from all 3PL providers. webMethods Optimize for Process software for Business Activity Monitoring(BAM) provides real-time insights into event-driven processes. Fonterra can see how these processes are performing, whats working well, where there may be bottlenecks and why, and what can be improved.

Using webMethods Composite Application Framework (CAF), Fonterra created a single graphical view of any order. Agents can input an order identifier, for example, a purchase order number, to see 100 different facts about the order on a single screen.

by: Alan Thurner

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